Management Styles and Organisational Effectiveness in Vietnam: A Comparison in Terms of Management Practices between State-owned and Foreign Enterprises

Abstract

Human capital initiatives play a vital role in resolving the most pressing business challenges. The effective management of human poses new challenges in the organization for leadership and managerial capabilities. The current study aims to analyze the factors that are closely associated with employee satisfaction in both Vietnamese state-owned enterprise and foreign-owned enterprise in order to understand the difference of management practices. The response was taken from a sample of 250 respondents in either two types of business and the data are carried out by using multiple statistical analyses, including exploratory factor analysis, reliability test, mean point value, and multiple linear regressions. The results indicate that for the state-owned enterprise, recruitment process is the most important factor that helps to improve the satisfaction of employee. Besides, for the foreign-owned enterprise, as the results of the current study, performance appraisal process is the main point to solve employee‘s problems. The findings also provide useful implications for managers in terms of improving human capital quality, and stabilizing the labor resources and reducing the turnover rate for both state-owned enterprise and foreign-owned enterprises.